London-based Electra Private Equity PLC agreed to sell PhotoBox and Knight Square, two of its larger noncontrolled assets, to funds managed by New York City-based Lexington Partners LP.
The deal is part of Electra's plan to execute a managed wind-down of its portfolio, following the third phase of its strategic review.
The cash proceeds from the sale of the PhotoBox and Knight Square investments are expected to be £98 million and £21 million, respectively. The PhotoBox deal is expected to close in October, while the Knight Square transaction is subject to regulatory approval, expected to be obtained in the first quarter of 2019.
The company plans to distribute special dividends of £140 million, or £3.65 per share, initially in December and £21 million, or 54 pence per share, in the first quarter of 2019. The December and first-quarter 2019 dividends are subject to the closing of the PhotoBox and Knight Square transactions, respectively.
The December dividend is also contingent on Electra's adoption of its revised investment objective and policy, which will be up for a shareholder vote at a general meeting Oct. 30.
Lexington independently manages secondary private equity and co-investment funds, while Electra specializes in growth capital, buyouts, recapitalization, control buyouts, private investments in public equity and middle-market investments.